Exhibit 12(a) | |||||||||||||||||||||||
PPL CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND | |||||||||||||||||||||||
PREFERRED STOCK DIVIDENDS | |||||||||||||||||||||||
(Millions of Dollars) | |||||||||||||||||||||||
3 Months | |||||||||||||||||||||||
Ended | |||||||||||||||||||||||
March 31, | Years Ended December 31, | ||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||
Earnings, as defined: | |||||||||||||||||||||||
Income from Continuing Operations Before | |||||||||||||||||||||||
Income Taxes | $ | 804 | $ | 2,201 | $ | 1,239 | $ | 538 | $ | 1,273 | $ | 1,230 | |||||||||||
Adjustments to reflect earnings from equity method | |||||||||||||||||||||||
investments on a cash basis | 1 | 7 | 1 | 2 | |||||||||||||||||||
804 | 2,202 | 1,246 | 539 | 1,273 | 1,232 | ||||||||||||||||||
Total fixed charges as below | 262 | 1,022 | 698 | 513 | 568 | 609 | |||||||||||||||||
Less: | |||||||||||||||||||||||
Capitalized interest | 14 | 51 | 30 | 43 | 57 | 55 | |||||||||||||||||
Preferred security distributions of subsidiaries | |||||||||||||||||||||||
on a pre-tax basis | 6 | 23 | 21 | 24 | 27 | 23 | |||||||||||||||||
Interest expense and fixed charges related to | |||||||||||||||||||||||
discontinued operations | 3 | 12 | 15 | 16 | 39 | ||||||||||||||||||
Total fixed charges included in Income from | |||||||||||||||||||||||
Continuing Operations Before Income Taxes | 242 | 945 | 635 | 431 | 468 | 492 | |||||||||||||||||
Total earnings | $ | 1,046 | $ | 3,147 | $ | 1,881 | $ | 970 | $ | 1,741 | $ | 1,724 | |||||||||||
Fixed charges, as defined: | |||||||||||||||||||||||
Interest charges (a) | $ | 246 | $ | 955 | $ | 637 | $ | 446 | $ | 518 | $ | 565 | |||||||||||
Estimated interest component of operating rentals | 10 | 44 | 39 | 42 | 22 | 21 | |||||||||||||||||
Preferred securities distributions of subsidiaries | |||||||||||||||||||||||
on a pre-tax basis | 6 | 23 | 21 | 24 | 27 | 23 | |||||||||||||||||
Fixed charges of majority-owned share of 50% or | |||||||||||||||||||||||
less-owned persons | 1 | 1 | 1 | ||||||||||||||||||||
Total fixed charges (b) | $ | 262 | $ | 1,022 | $ | 698 | $ | 513 | $ | 568 | $ | 609 | |||||||||||
Ratio of earnings to fixed charges | 4.0 | 3.1 | 2.7 | 1.9 | 3.1 | 2.8 | |||||||||||||||||
Ratio of earnings to combined fixed charges and | |||||||||||||||||||||||
preferred stock dividends (c) | 4.0 | 3.1 | 2.7 | 1.9 | 3.1 | 2.8 |
(a) | Includes interest on long-term and short-term debt, as well as amortization of debt discount, expense and premium - net. | |
(b) | Interest on unrecognized tax benefits is not included in fixed charges. | |
(c) | PPL, the parent holding company, does not have any preferred stock outstanding; therefore, the ratio of earnings to combined fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges. |